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Compressed Natural Gas (CNG) and Liquefied Natural Gas (LNG)
Who is responsible for this tax?
When compressed natural gas (CNG) and liquefied natural gas (LNG) is sold or delivered into a motor vehicle’s fuel supply tank by a licensed CNG/LNG dealer, the dealer collects the tax. Those who deliver CNG or LNG from their own storage into their own vehicles are also required to be licensed CNG/LNG dealers.
Rates
Fifteen cents ($.15) per gallon.
Deductions
When the CNG and LNG tax is paid on or before the due date, apply the following deduction:
- Dealers: 1 percent (Tax Code Sec. 162.362)
- Interstate Truckers: 1/2 percent (Tax Code Sec. 162.362)
Due Date
Licensed Dealers
Quarterly on 25th day of the month following the end of the calendar quarter:
- April 25
- July 25
- Oct. 25
- Jan. 25
Yearly (if qualified) on January 25 (Tax Code Sec. 162.362).
Interstate truckers (except IFTA licensed)
Yearly on January 25 for previous year (Tax Code Sec. 162.362).
Penalties and Interest
Penalties
- A $50 penalty is assessed on each report filed after the due date.
- If tax is paid 1-30 days after the due date, a 5 percent penalty is assessed.
- If tax is paid over 30 days after the due date, a 10 percent penalty is assessed.
Interest
- Past due taxes are charged interest beginning 61 days after the due date.
- To calculate interest on past due taxes, visit Interest Owed and Earned.
Reporting and Payment Requirements
Select the amount of taxes you paid in the preceding state fiscal year (Sept. 1 – Aug. 31) to find the reporting and payment methods to use.
Less than $500,000
Select one of these reporting methods:
- A paper report is the only available reporting method.
Select one of these payment methods:
$500,000 or more
Select one of these reporting methods:
- A paper report is the only available reporting method.
TEXNET is the only acceptable payment method.